Power and Water Utility Company for Jubail and Yanbu SJSC

The company maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 2.36, indicating that long-term debt of 13.25 billion SAR substantially exceeds total equity of 5.61 billion SAR. Liquidity is assessed as medium risk, supported by a current ratio of 1.12, which suggests adequate short-term coverage of liabilities but limited buffer. The balance sheet shows total assets of 22.15 billion SAR against total liabilities of 16.54 billion SAR. Cash and equivalents stand at 774 million SAR, while net cash is negative after accounting for total debt, highlighting a reliance on debt financing for its asset base.

Profitability metrics indicate modest returns on capital, with a return on equity (ROE) of 8.18% and a return on assets (ROA) of 2.07%. The company generated a net income of 449.43 million SAR on revenue of 6.95 billion SAR, resulting in a net margin of approximately 6.5%. Operating income was 1.25 billion SAR, demonstrating that core operations generate sufficient cash flow to service debt, as evidenced by an operating cash flow of 1.64 billion SAR. Free cash flow stands at 1.56 billion SAR, reflecting disciplined capital expenditure of 419.28 million SAR.

Revenue concentration is implied by the company's specific operational mandate in Jubail and Yanbu, key industrial cities in Saudi Arabia. While specific segment breakdowns are not detailed in the available data, the business model is inherently tied to the industrial activity levels in these regions. The geographic exposure is entirely domestic, focusing on the Saudi Arabian market, which subjects the company to local regulatory frameworks and economic cycles.

Growth trajectory analysis is limited by the absence of historical period data in the current input. However, the current revenue base of 6.95 billion SAR provides a stable foundation. The company's ability to maintain or grow revenue will depend on industrial demand in its service areas and potential tariff adjustments. Without multi-year historical data, year-over-year growth rates cannot be calculated, but the consistent generation of positive free cash flow suggests operational stability.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which is typical for capital-intensive utilities but requires careful management of interest obligations. The debt-to-equity ratio of 2.36 is a primary concern, as it amplifies financial risk in rising interest rate environments. However, the low dilution risk indicates that existing shareholders are not currently facing significant equity dilution from new issuances.

Recent events and market sentiment reflect a neutral-to-positive outlook, with a mean analyst recommendation of 2.00 (on a scale where 1 is strong buy). The mean price target is 53.67 SAR, with a median of 60.00 SAR, suggesting analysts see upside potential from current levels. There are three buy ratings and no hold or strong sell ratings, indicating confidence in the company's ability to execute its business plan. No specific filing or news events were detailed in the input, but the analyst consensus supports the stability of the utility's operations.

Analysts project 36.3% upside to a mean price target of 53.67 SAR, signaling strong market confidence in future performance.

Cash conversion ratio of 3.58 ranks in the top quartile, exceeding the 1.66 cohort median significantly.

Free cash flow surged to 1.56 billion SAR in FY2026, reflecting improved liquidity generation capabilities.

Debt-to-equity ratio of 2.36 places the company in the bottom quartile, indicating significantly higher leverage risk than peers.

High credit risk flag suggests potential difficulties in meeting financial obligations or maintaining favorable borrowing terms.

Medium liquidity risk flag indicates potential challenges in managing short-term financial obligations effectively.

Revenue SAR 1.81B, +6,5% YoY; Operating income −3,7% YoY.

• ▍Revenue SAR 1.81B, +6,5% YoY
• ▍Operating income −3,7% YoY
• ▍Net income +8,2% YoY
• ▍Free cash flow −122,1% YoY
• ▍Net margin 7.0%

Revenue SAR 1.84B, +7,6% YoY; Operating income −10,4% YoY.

• ▍Revenue SAR 1.84B, +7,6% YoY
• ▍Operating income −10,4% YoY
• ▍Net income +118,5% YoY
• ▍Free cash flow +386,6% YoY
• ▍Net margin 2.8%

Revenue SAR 2.00B, +7,8% YoY; Operating income −22,3% YoY.

• ▍Revenue SAR 2.00B, +7,8% YoY
• ▍Operating income −22,3% YoY
• ▍Net income −24,4% YoY
• ▍Free cash flow +13,8% YoY
• ▍Net margin 8.5%

Revenue SAR 1.40B, −18,4% YoY; Operating income −9,0% YoY.

• ▍Revenue SAR 1.40B, −18,4% YoY
• ▍Operating income −9,0% YoY
• ▍Net income +17,8% YoY
• ▍Free cash flow +18,4% YoY
• ▍Net margin 7.8%

Revenue SAR 1.70B; Operating income SAR 328.6M.

• ▍Revenue SAR 1.70B
• ▍Operating income SAR 328.6M
• ▍Net margin 6.9%

Revenue SAR 1.71B; Operating income SAR 281.3M.

• ▍Revenue SAR 1.71B
• ▍Operating income SAR 281.3M
• ▍Net margin -16.2%

Revenue SAR 1.86B; Operating income SAR 467.3M.

• ▍Revenue SAR 1.86B
• ▍Operating income SAR 467.3M
• ▍Net margin 12.2%

Revenue SAR 1.72B; Operating income SAR 341.0M.

• ▍Revenue SAR 1.72B
• ▍Operating income SAR 341.0M
• ▍Net margin 5.4%

Revenue SAR 6.95B, +0,9% YoY; Operating income +32,3% YoY.

• ▍Revenue SAR 6.95B, +0,9% YoY
• ▍Operating income +32,3% YoY
• ▍Net income +2 520,3% YoY
• ▍Free cash flow +151,0% YoY
• ▍Net margin 6.5%

Revenue SAR 6.88B, +7,7% YoY; Operating income −5,8% YoY.

• ▍Revenue SAR 6.88B, +7,7% YoY
• ▍Operating income −5,8% YoY
• ▍Net income −96,7% YoY
• ▍Free cash flow +11,9% YoY
• ▍Net margin 0.2%

Revenue SAR 6.39B, −1,8% YoY; Operating income −8,1% YoY.

• ▍Revenue SAR 6.39B, −1,8% YoY
• ▍Operating income −8,1% YoY
• ▍Net income −37,8% YoY
• ▍Free cash flow −36,5% YoY
• ▍Net margin 8.2%

Revenue SAR 6.51B, +5,0% YoY; Operating income +9,7% YoY.

• ▍Revenue SAR 6.51B, +5,0% YoY
• ▍Operating income +9,7% YoY
• ▍Net income +33,8% YoY
• ▍Free cash flow −3,4% YoY
• ▍Net margin 13.0%